Kentucky
State Resources
With the world’s longest known cave system of over 400 explored miles, Kentucky is home to the Mammoth Cave National Park. The state’s limestone-rich water and climate make it ideal for distilling, thus enabling Kentucky to produce 95% of the world’s bourbon. Manufacturing (especially automotive, aerospace, and chemicals) remains the cornerstone of Kentucky’s economy with companies such as GE Aerospace and Raytheon having manufacturing and distribution centers within the state. Kentucky’s Cabinet for Economic Development is the primary state agency encouraging job creation, retention and business investment in the state, and works to attract new industries as well as to help existing companies grow. The Cabinet also supports and provides resources for entrepreneurs, startups and small business owners. The Commonwealth of Kentucky sponsors a wide range of investment initiatives and venture programs to increase the availability of equity investment capital for fast growth and scalable new businesses in Kentucky. The Kentucky Angel Investment Tax Credit (KAITC) provides tax benefits to angel investors, while the Kentucky Investment Fund Act (KIFA) provides tax benefits to individual and corporate investors.
SBIR/STTR Matching Funds Award
The Kentucky SBIR/STTR Matching Funds Award Program is a non-dilutive, reimbursable grant that matches $100,000 for a Phase I project, and up to $150,000 for a Phase II project. Matching grants are awarded on a competitive basis to companies based in (or willing to re-locate to) Kentucky.
SBIR/STTR Micro-Awards
Kentucky also provides Micro-Awards (previously referred to as Phase 0) to companies pursuing SBIR/STTR funding. Administered by the Kentucky Science and Engineering Foundation (KSEF), these awards can cover up to $5,000 in costs associated with preparing a federal SBIR/STTR proposal.
The Kentucky Enterprise Fund
The Kentucky Enterprise Fund, managed by the Kentucky Science and Technology Corporation’s venture capital arm, Keyhorse Capital, provides pre-seed and seed stage investments to scalable Kentucky startups. The Fund makes debt or equity investments and focuses on companies that are engaged in commercialization of R&D, applying new technology, or with the potential to accelerate technology innovation.
The Kentucky Growth Capital Fund (KGCF)
The Kentucky Growth Capital Fund (KGCF) makes direct equity investments in early to growth-stage Kentucky technology-based companies seeking private funding from angel and venture capital investors. Eligible companies include technology-based partnerships, corporations, and limited liability companies, that are based in or relocating to Kentucky with 500 or fewer employees. The maximum total investment amount per company is $2.5 million.
The Commonwealth Seed Capital Fund (CSC)
The Commonwealth Seed Capital Fund (CSC) is an independent fund that invests in early-stage Kentucky businesses to assist in commercializing innovative ideas and technologies. Companies must have a significant Kentucky presence, the prospect for substantial growth, and the potential to generate an appropriate rate of return. Investments are typically made in the areas of health and human development; information technology and communications; bioscience; environmental and energy technologies; and materials science and advanced manufacturing.
